Calling the rising costs to families as “too damn high,” state Gov. Kathy Hochul unveiled a historic expansion of New York’s child tax credit for more than 2.75 million children.

Hochul’s plan would give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from 4 through 16. This proposal represents the single largest boost to New York’s child tax credit in its history, and a significant increase above the value of the existing credit, which currently provides only up to $330 per child.

“From groceries to strollers to kids’ clothes, the cost of living and raising a family is still too damn high — and that’s why we’re proposing a massive increase in New York’s child tax credit to put up to $1,000 per kid back in the pockets of hardworking families,” Hochul said. “As New York’s first mom governor, I know how hard it can be for parents to make ends meet — and I’ll never stop fighting to make New York more affordable for every family.”

Hochul’s proposed expansion of New York’s child tax credit will drive significant assistance to families with the youngest children and help families across the income spectrum. The average credit given out to families will double from $472 to $943. It will be instrumental in helping to address child poverty in New York State — and will also deliver relief to many middle-class families whose incomes are currently too high to qualify for the credit.

Under Hochul’s expanded child tax credit, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program.

“As co-chair of the Child Poverty Reduction Advisory Council, we know the evidence is clear that reducing childhood poverty will result in improved physical and mental health for families and lead to significantly improved educational and employment outcomes for children,” said New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn. “Governor Hochul’s expansion of the Child Tax Credit represents a significant step forward in achieving our goal of reducing child poverty in New York State. For families who are finding it challenging to live and raise a family in our state, increasing the credit to $1,000 or $500 per child will provide a much-needed boost to their household budgets. This historic announcement underscores Governor Hochul’s commitment to confronting the economic challenges facing New Yorkers and is another welcomed example of the Governor’s commitment to taking concrete actions to support families throughout our state.”

Additionally, while the full credit is available to jointly filing households up to $110,000, the expanded credit combined with its gradual rate of phaseout means even a family of four with household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.

This announcement builds on Governor Hochul’s legacy of lifting up New York’s families, including expanding the State’s child tax credit to more than 600,000 previously excluded children under four in 2023. With Governor Hochul’s plan unveiled today, a family with a three year old would benefit from up to $1,000 — money that can be put toward child care, food and other essentials — when they would have qualified for zero dollars only two years ago.

In Western New York, it is estimated the proposal would benefit 118,000 households and 207,000 children.

The credit will be phased in over two years, with households with children under four eligible for their $1,000 credit for the 2025 tax year and those with children over four eligible for the $500 credit for the 2026 tax year. The Empire State Child Credit is a refundable credit, which can either help offset taxes or be paid out directly to taxpayers as a refund.

When fully implemented, it is estimated that this one initiative could reduce poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including expanding subsidized child care, will see child poverty reduced by 17.7 percent.

Hochul has been advancing efforts to reduce child poverty since she took office in 2021 and created the Child Poverty Reduction Advisory Council (CPRAC) with the goal of significantly reducing child poverty. The CPRAC put forward recommendations in December 2024, which included the expansion of a child tax credit as the most impactful method by which to reduce poverty.

“By expanding this refundable tax credit, Governor Hochul will help lift even more children out of poverty,” said state Department of Taxation and Finance Acting Commissioner Amanda Hiller.